The South African National Treasury discussion paper on microinsurance2 seeks to balance the need for consumer protection with financial inclusion and reduce the impact of the cost of regulation on the market. It also proposes changes to the way market conduct and intermediaries are regulated in the low-income market. At its base, the paper recognises that insurance could have an important role in reducing the vulnerability of poor people. Protecting the poor out of the market is, therefore, neither in the interests of the consumer nor business.
FA Nwes Magazine